Dear Sovryns,
The Sovryn Lending and Zero protocols currently depend on the Rootstock Oracle price feed on the Rootstock blockchain as a fallback price oracle for WRBTC in USD. This fallback oracle is utilized only when the primary oracle returns a zero price.
As the Rootstock Oracle is set to be discontinued soon, we propose deactivating the fallback oracle instead of replacing it. After extensive research and analysis, we determined that the primary Money-on-Chain oracle—a decentralized and highly reliable solution—has consistently demonstrated robust fault tolerance, eliminating the need for an additional fallback oracle at this time.
Additionally, to enhance the security and resilience of the protocol, we have updated the price feed contract logic to include a stale price parameter. This feature was previously lacking, which posed a risk of relying on outdated price data. The stale price mechanism ensures that outdated prices are not used, causing transactions to revert when the price data is stale.
To implement this change, we propose replacing the fallback Rootstock oracle with a “dummy oracle.” This dummy oracle will always return a zero price and mark it as stale. Importantly, this approach maintains flexibility for the community to integrate a new, reliable fallback oracle that complies with the Chainlink interface, should the need arise in the future.
Governance Process
Given that the contracts requiring updates are governed by different governor contracts, two separate SIPs will be created to implement the changes. Both proposals must be approved for the updates to take full effect.
These proposed changes are designed to enhance the security and sustainability of the Sovryn protocol. We encourage you to vote for the SIPs.
We are grateful for your continued support and engagement.
The SIPs:
SIP-0084 Part 1
SIP-0084 Part 2